The INPRS Board of Trustees approved employer contribution rates for several of INPRS’s plans during Oct. 27, 2023, Board of Trustees meeting.

Defined Benefit (DB) Employer Contribution Rates Effective 7/1/2024 (Fiscal Year 2025 [FY25])

The PERF rate is unchanged from the prior year. The TRF ’96 rate is expected to increase and is discussed further below.

Legislator's Defined Contribution (LE DC) (FY25)

The LE DC contribution rate is the same as the PERF DB contribution rate, including its 3% DC component.  That means its rate remains at 14.2% for FY 2025.

Contribution Rates Effective 1/1/2025 (Calendar Year 2025 [CY25])

Rates remained the same from the prior year.

Appropriation Requests

No appropriation requests were voted on at the board meetings because they were already set in the FY24 – FY25 budget passed by the General Assembly in early 2023.  As a reminder, here are the amounts of those appropriations (from HEA 1001-2023).

The TRF Pre-’96 DB appropriations above exclude any special contributions that could be received in coming fiscal years.

My Choice Funds

In addition, the INPRS Board approved the following rates for the My Choice funds:

The employer contribution credited to the member’s account is equal to the total normal cost of the relevant defined benefit plan liabilities, rounded down to the nearest 0.1%. For this purpose, political subdivisions can contribute any amount up to the normal cost, including 0%. In previous years, the PERF State and PERF Political Subdivision rate was a normal cost specific to their population. This year, those rates have been combined into a single, plan-wide PERF rate.

Supplemental Reserve Accounts

The INPRS Board approved the following surcharge rates for the supplemental reserve accounts starting January 1, 2024.

There were no changes at this time.

The lottery revenue ($30,000,000 per year) is currently arriving in $2,500,000 portions per month and being allocated to the TRF Pre-’96 Supplemental Reserve Account.

TRF ’96 DB (TRF Hybrid Plan) & TRF My Choice Plan

The TRF ’96 DB fund employer contribution rate is currently 6.00% for FY 2024. In the June 30, 2023, actuarial valuation, INPRS’s actuaries determined that this contribution rate level is not sufficient to fund the promised benefits and needs to be increased. However, legislation under consideration may affect the surcharge rate for the TRF ’96 DB supplemental reserve account. Because of this uncertainty, the INPRS Board of Trustees has chosen to set the TRF ’96 DB employer contribution rate for FY 2025 after the conclusion of the 2024 legislative session.

The TRF ’96 DB contribution rate is also used to determine the employer contribution credited to the unfunded actuarial accrued liability in the TRF My Choice plan. Once the rate is set for the TRF ’96 DB fund, this portion of the TRF My Choice rate will be determined as well.

Updated 3/28/24: Contribution Rate Change - Due to lower-than-expected investment returns, higher-than-expected salary growth, and legislation authorizing a future COLA for retired teachers, next year INPRS will need to raise the contribution rate from the current rate of 6.0%. It is anticipated that the TRF 1996 DB employer rate will be increased to 6.5% during the INPRS Board of Trustees meeting on April 26, 2024.

The new proposed TRF '96 DB contribution rate will take effect on July 1, 2024. This rate will also be the total employer contribution rate for the TRF My Choice plan beginning July 1, 2024. It is expected that the contribution rate will be increasing at least 0.1% each year through 2029 because of legislation authorizing a future COLA for retired teachers. Actual contribution rates will be determined based on the latest actuarial valuations at that time.

For more information, visit the Employer Contribution Rate Information page.